KPIT Technologies Leverages AI for Margin Growth Amid Modest Q2 Revenue

KPIT Technologies reported a rise in EBITDA margin to 17.8% in Q2 FY27, even as revenue growth remained subdued. The Pune-based company is betting on artificial intelligence to drive profitability, with management emphasizing AI-led productivity gains and higher-value services for automotive clients. Net cash declined sharply to ₹620.5 crore from ₹901.7 crore in the previous quarter, reflecting investments in technology and working capital needs. The margin improvement signals operational efficiency, but the cash drop may raise questions about capital allocation. KPIT's focus on software-defined vehicles and AI-driven engineering solutions positions it to capture long-term demand from global automakers. Investors will watch whether AI initiatives can sustain margin expansion without sacrificing growth. The company remains a key player in automotive software, but near-term revenue softness could pressure the stock unless AI-driven deals accelerate.